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(Alliance News) - Taylor Wimpey PLC on Wednesday raised its full-year outlook as it reported a 16% rise in interim profit.
For the six months that ended on July 3, the FSTE-100 Buckinghamshire-based housebuilder said revenue came in slightly lower, however, at GBP2.08 billion, down 5.4% from GBP2.20 billion a year earlier due to the "lower level of completions in the UK," the company explained.
Pretax profit rose 16% year-on-year to GBP334.5 million from GBP412.5 million. Net operating expenses were 15% lower at GBP189.9 million from GBP224.6 million a year earlier.
Taylor Wimpey completed 6,790 homes during the half, excluding joint-ventures, down 7.0% year-on-year but ahead of guidance.
"The housing market continues to be resilient despite inflationary pressures in the wider economy and recent rises in the Bank of England base rate. There remains good availability of attractively priced mortgages, and we continue to see a healthy level of demand for Taylor Wimpey homes reflecting the quality of our homes and locations nationwide," it said.
Taylor Wimpey declared a 4.62 pence per share dividend, up 12% from 4.14p a year earlier.
"Our intention remains to return cash generated by the business in excess of that needed by the group to fund land investment, all working capital, taxation and other cash requirements of the business, and once the ordinary dividend has been met. We will review the level of excess capital and potential return in respect of 2022 at the time of the 2022 full year results in March 2023, for payment in 2023," Taylor Wimpey added.
Looking ahead, Taylor Wimpey expects yearly operating profit at the top end of the current market consensus range, helped by average selling prices, which it forecasts to rise 4% to 5% year-on-year. It also expects low single digit year-on-year growth in UK completions for 2022, with margin guidance unchanged.
Shares were up 2.9% at 123.50 pence each on Wednesday morning in London.
By Xindi Wei; xindiwei@alliancenews.com
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